industry

The Next Big Thing in the Cannabis Industry

Canada has a pot problem, as Quartz Media recently warned us, but it’s a lucrative problem to have. One thing holding back this $8-billion market Forbes Magazine, April 13, 2017) is supply, and one little-known company plans to be the steward of it in a big way.

When Canada legalizes recreational marijuana in less than a year, in line with a bill pushed through by Prime Minister Justin Trudeau, legal supply is likely to be limited. There may not even be enough even if we are only considering medical marijuana usage. Keeping an eye on Insys Therapeutics (NASDAQ:INSY), Scotts Miracle-Gro Co (NYSE:SMG), Zynerba Pharmaceuticals (NASDAQ:ZYNE), Innovative Industrial Properties (NYSE: IIRP), Teva Pharmaceuticals (NASDAQ: TEVA).

The supply picture is so fantastically tight that Health Canada has had to streamline the approval process for growers because medical marijuana users have tripled in number since last year alone, according to Quartz. When it becomes legal recreationally, a Deloitte report estimates the economic impact will be worth $22.6 billion annually in other words, more than the combined sales of beer, wine and spirits.

Meet Cannabis Wheaton the world’s first cannabis streaming company, backed by a powerhouse team, with the biggest industry trailblazer leading the way.

Not only is Cannabis Wheaton jumping into a huge potential market where supply is forecast to struggle to reach demand, but it’s offering a lifeline to new and existing growers who need financing to get off the ground fast.

Producers need a miracle grow strategy, and Cannabis Wheaton is stepping in to fill the gap with a ‘royalty’ business model that is new to this market.

And for investors, the major upside is that this model removes the risks associated with putting all your money into a single-crop producer.

Cannabis Wheaton is intending to ‘stream’ pot, and 15 partners have already been lined up, along with 1.4 million square feet of growing acreage. (Source: Markets Insider)

Bombardier CEO admits ‘bad job’ communicating pay increases

Bombardier did “a bad job” explaining its decision to raise executive compensation, but the company has listened to the public and is now ready to turn the page, CEO Alain Bellemare says.

October 13, 2016

In an interview, Bellemare acknowledged that Bombardier (TSX:BBD.B) underestimated the anger that would erupt over the pay hikes, which were to come as it was issuing pink slips to thousands of employees while receiving federal and provincial assistance.

“It’s all on us at Bombardier,” he said. “The message here is we did listen, we paid attention, we care.”

Bellemare announced late Sunday that he has asked Bombardier’s board of directors to delay the payment of more than half of this year’s total planned compensation for six executive officers, including himself, by one year — until 2020. The compensation would be paid as long as certain objectives that haven’t changed are met by that time.

The remuneration is required to attract top talent to turn around the company’s fortunes, which in turn benefits employees and shareholders alike, he said.

Last week, the company issued a proxy circular showing that Bellemare and five others were in line for a nearly 50 per cent increase in compensation, most of which was to be granted in 2019. The disclosure stoked fierce outcry that lasted for days, including a weekend protest at Bombardier’s headquarters in Montreal.

Federal Economic Development Minister Navdeep Bains said Monday that like many Canadians, he was disappointed by the Bombardier executive pay raises, but it seems like the company is trying to address those concerns.

“Clearly there’s a recognition that they need to make changes, that they need to approach this differently,” Bains said, striking a different message from the one offered by the prime minister last week.

Asked how he can justify the $372.5-million federal loan for Bombardier’s CSeries and Global 7000 aircraft programs, Justin Trudeau said his government respects “the free market and the choices that companies will make.” (Source: CTV news)

Locals outraged at Ottawa’s “deafening silence” on steel industry

Union leaders, Opposition MPs and even the Chamber of Commerce are pressing the federal government to help Canada’s struggling steel industry.

Two Hamilton Members of Parliament, three chambers of commerce and union leaders at the local and provincial levels separately have called for help for the industry and especially for retirees and workers in Hamilton.

Thursday September 26, 2015

NDP MPs Scott Duvall (Hamilton Mountain) and Dave Christopherson (Hamilton Centre) have written to Economic Development Minister Navdeep Bains, saying the federal government has stayed on the sidelines too long.

“To date, your government has not been tangibly involved in any way to help protect the jobs, benefits and pensions of current and former employees of USSC/Stelco despite commitments previously made by colleagues and the Prime Minister” they wrote. “Workers, pensioners, the business community and the City of Hamilton have all appealed for your help. So far, you and your government have been missing in action.”

As a start, they want the government to release the “secret deal” that ended a lawsuit against U.S. Steel for breaking the production and employment promises it made to get government approval for the acquisition.

They also back a call by the United Steelworkers union for a public inquiry into Canadian bankruptcy law they say favours creditors at the expense of workers and retirees, and the 2007 takeover of Stelco by U.S. Steel. Duvall has raised the issue in Parliament several times.

September 18, 2014

U.S. Steel Canada, the former Stelco, has been under creditor protection since Sept. 16, 2014. It is seeking a buyer for the mills in Hamilton and Nanticoke.

On the business front, chambers of commerce in Hamilton, Windsor and Sault Ste. Marie are taking a joint resolution to the Canadian chamber’s national convention calling for a policy to protect the industry from unfair foreign competition.

Friday October 9, 2015

“The biggest issue for us is dumping from China,” said Hamilton Chamber of Commerce president Keanin Loomis. “Obviously there’s a real issue of fairness there.”

Products are dumped in foreign markets when they are sold for less than their costs of production or with subsidies from a government.

“What we want is a level playing field in the global production and procurement process,” added Rory Ring, executive director of the Sault chamber. “We’re competing against companies that are either government owned or that operate with less than reasonable environmental and labour laws.” (Source: Hamilton Spectator)

After Paris climate talks comes the hard part: a global carbon diet

The world is about to go on a carbon diet. It won’t be easy — or cheap.

Nearly 200 countries across the world on Saturday approved a first-of-its-kind universal agreement to wean Earth off fossil fuels and slow global warming, patting themselves on the back for showing such resolve.

On Sunday morning, like for many first-day dieters, the reality sets in. The numbers — like calorie limits and hours needed in the gym — are daunting.

How daunting? Try more than 7.04 billion tonnes. That’s how much carbon dioxide needs to stay in the ground instead of being spewed into the atmosphere for those reductions to happen, even if you take the easier of two goals mentioned in Saturday’s deal. To get to the harder goal, it’s even larger numbers.

In the pact, countries pledged to limit global warming to about another one degree Celsius from now (or 2 C measuring against the pre-industrial average global surface temperature) — and if they can, only half that.

Another, more vague, goal is that by sometime in the second half of the century, human-made greenhouse gas emissions won’t exceed the amount that nature absorbs. Earth’s carbon cycle, which is complex and ever-changing, would have to get back to balance. (Source: CBC News)

Hamilton’s film explosion ‘beyond manageable’

The director of Tourism Hamilton says film production in Hamilton has been exploding and the city needs to do a complete review of how the industry is being managed.

Susan Monarch says the combination of a low Canadian dollar and provincial tax incentives to schedule film shoots outside of the Greater Toronto Area has led to a deluge of movie shoots in Hamilton. That has caused all kinds obstructed streets and aggravation to people and businesses.

“In September, there were 18 productions on downtown streets. That is beyond manageable. We need to look at this,” said Monarch.

In 2014, the number of productions filmed in the city shot up to 100 from 75 the year before. So far this year, there have been 84, showing the city is in line to likely surpass last year’s totals.

“It has become a major industry. We need to sit back and look at what are we doing as a community,” Monarch said.

On the table are big hikes in film permit fees, currently only $29, but also increases in parking charges and rental fees for city-owned facilities.

Ward 3 Coun. Matthew Green, the chair of the BIA advisory committee, says: “We have now attracted this incredible industry to the city but the fees don’t reflect the impact it has in the community.”

He believes the city needs to create a graduated scale of fees based on the size of the production. Increasing the revenue stream for the city would go some distance in recouping administrative costs of the city’s film office, which looks after applications from production companies.

As well, Monarch said the film application process needs to be updated with greater oversight to make sure film companies live up to their obligations.

City staff will look into the issue and produce a report for councillors. (Source: Hamilton Spectator)